Raymond James’s Frank Louthan IV this morning reiterates a Market Perform rating on AT&T (T), writing that the company’s disclosure last Wednesday that it would have a record level of smartphone sales this quarter.
Louthan thinks that will entail a record number of Apple’s (AAPL) iPhones sold as well, he writes, and so he’s lowered AT&T’s profit estimate to account for the “large subsidies on this particular smartphone.”
He writes, “We believe the total quarter of iPhone sales to be greater than 7 million [at AT&T].”
Louthan is now modeling $2.25 per share in profit, below the Street consensus of $2.30.
One can imagine those AT&T iPhone sales will be enhanced by news of a promotion from Radio Shack (RSH) running this week that offers discounts on the new iPhone 4S, as described by TechCrunch’s Jordan Crook.
Several analysts last week raised their iPhone numbers based on AT&T’s remarks.
AT&T shares today are down 5 cents at $28.98, while Apple shares are down $2.06, or half a percent, at $391.56.
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